Save interest on credit cards
Read on to learn how to manage interest free periods offered by credit cards.
The best things in life are free, goes the old saying. Credit cards, which have emerged as a popular way for payments and spending, have for a long time given one of the most important things for free: interest. While they may charge over 3% interest per month, credit cards give spenders a great chance to pay ‘zero interest’ during the grace period. This interest-free credit period can range from 18-48 days to 25-55 days depending on your payment due date. Read on to know how.
Peerless opportunity
There is no other credit product that gives a solid chance of avoiding interest to its borrowers. Credit cards do it. In that sense, credit cards behave like a true friend who helps you in your need but doesn’t expect any commercial benefit.
To know which cards are offered by Standard Chartered, click here.
Know the dates
Let us understand a few terms before we explain to you how you can smartly manage the credit card without paying any interest.
There is always a payment due date. This is written on your credit card statement. Plus, the bank also sends an SMS on your registered mobile phone and may mention this date.
The payment due date on your credit card can be between 18 and 25 days after the statement date, the day when the statement is made.
So, the interest-free credit period can range from 18-48 days to 25-55 days depending on your credit card’s payment due date.
To know more about how Standard Chartered India’s credit cards, read the frequently asked questions here.
Learn with examples
Let us assume that your statement date is November 2 and the payment date is November 24. The statement date means the statement covers credit card transactions billed between October 3 and November 2.
Since your payment due date is November 24, you will have to pay the total due amount by November 24. If you do this, you are eligible for interest-free period.
So, as you can see in this case, the payment due date (November 24) is 22 days after the statement date (November 2).
How long is the interest-free period for the credit card in this example? The answer is it will range from 22-52 days.
For a transaction billed on October 3, the interest-free period is 52 days (from October 3 to November 24).
For a transaction billed on Nov, 2 the interest-free period is 22 days (from November 2 to November 24).
Whats more is that there are a whole host of rewards and privileges that credit cards offer. Check out the offers on Standard Chartered credit card here.
Easy tips to save interest
Every credit cardholder should remember three tips.
1. If you make full payment of total credit card outstanding every month before the payment due date, congratulations. No interest will be charged. So, you can shop, dine, travel and spend with your credit card but as long as you pay all dues before the due date, you pay zero interest. To know about the range and benefits of our credit cards, click here now.
2. If you do partial payments of total outstanding credit card dues before payment due date, there is some interest levied. The interest is then charged for all transactions incurred in the current statement, i.e. from the transaction date till the statement date.
Do remember the closing balance in the previous statement will attract interest. The levy of interest will be done from one day post the statement date till one day prior to the date of payment, in the current statement. The balance after payment will attract interest from the date of payment till the statement date.
3. If you normally make a partial payment but in the current month you have made full payment on the total dues before payment due date, there will be some interest charged. The interest charged on your credit card will be on the closing balance as per your previous statement. Since you normally make partial payments, interest will accrue on the balance amount.
No grace period
Do note that the interest-free period does not apply in some cases. There is no interest-free time for cash advances and revolving balances.
For these, interest is charged from the word go i.e. the date of the transaction.
It is very easy to avoid interest on your credit card if you manage the dates and payments well. All you need to do is to understand the process and be financially responsible to make payments before the due date.
